Citadele Group earns EUR 18 million. How did it work?

Photo: LETAPhoto: LETA

Bank Citadele Group announces the results for the first half of 2018. The net profit of the Group increased by 20%, as did increased interest income, according to the aggregate information provided by the bank.

This year, Citadele has introduced several innovative solutions for its customers to promote their growth and provide useful banking services.

The results of the Citadele Group in the first half of 2018 were mainly due to the increase in net interest income from the increase in the volume of the Baltic loan portfolio, as well as higher portfolio requirements.

The net interest income of the group increased by 10% to 39.9 million euros. Compared to the first half of 2017, the net profit of the Group increased by 20% to EUR 18 million.

Guntis Beļavskis, Chairman of the Board of Directors of Citadele, said that Citadele has strengthened its position as an innovator in financial services in the Baltic States in the first six months of this year.

"We were the first in the Baltic states to offer entrepreneurs the opportunity to find their creditworthiness, the amount of microcredits available and the interest rate that is comparable to the people online." We were the first in Latvia to introduce biometric features into the mobile bank's app for validating payments, allowing customers to authorize and validate payments with both face recognition and fingerprint functionality ", emphasized Beļavskis.

At the same time, Citadele continues to implement its lending strategy in line with the Bank's goal of becoming a leading banking service provider in the Baltic States.

Loans to businesses and citizens more active

In line with Citadele's goal of becoming the leading provider of banking services in the Baltic States, the Citadele group increased the size of business loans, small and medium-sized enterprises and individuals in all three Baltic states in the first half of 2018.

The total loan portfolio increased by 3% compared to the first half of 2017 and amounted to 1.36 billion euros. In the first half of 2018, Citadele Group provided a total of EUR 221 million in new loans in the Baltic States.

In Latvia, Citadele Group issued new loans worth 126 million euros in the first half of 2018. In Lithuania, € 69 million has been allocated to new loans. In Estonia, EUR 26 million were allocated for new loans.

Capital Adequacy (CAR) of Citadele Group on 30 June 2018 was 18.0%. The Group's liquidity position remained strong: the liquidity coverage ratio (LCR) stood at 279% at the end of the first half of the year and the loan-to-deposit ratio was 51%.

The volume of local deposits will increase

Citadele is pleased with the growth in the Baltic States from 31 December 2017, when domestic deposits increased by 131 million euros.

The volume of transactions with foreign customers continued to decline in the first half of 2018, resulting in a decrease of the group's total customer deposits in the first half of 2018.

On 30 June 2018, the Group's deposit portfolio amounted to 2.65 billion euros, down 9% compared to 31 December 2017.

Introduces innovative digital banking services

In 2018, Citadele continued to invest in the development of digital technologies and customer service.

Citadele Group continued to actively develop and implement a number of new digital solutions, products and services for its customers: improved internet banking and mobile applications, updated payment terminals with touchless functions, new ATMs with touch-sensitive screens.

Citadele became the first bank in Latvia to introduce face detection in the mobile app.

To provide customers with a fast, easy and secure way to use banking services, the Citadele mobile app introduced Face ID and (Face ID) entered authorization and confirmation payments, as well as managing the card security settings.

Citadele also introduced a new type of debit card in Latvia – "X smart".

In order to improve access to finance for small and medium-sized enterprises (SMEs) and to simplify banking services, Citadele was the first bank in the Baltic states to introduce a new online tool for companies, just like individuals, to determine their individual creditworthiness .

It enables business managers to focus more on business and to discover the availability and conditions of microcredit online. With this new online tool, every small and medium-sized company in Latvia can check within a few minutes how much microcredit is available and what interest rate is offered, regardless of which bank customer it is.

CBL Asset Management, a subsidiary of Citadele, has created a new pension plan, the CBL Life Cycle Plan Millennials.

The investment strategy of this plan adapts to the age of customers over time and the management of this plan is provided at lower costs. The new pension plan is intended for people born between the years 1980 and 1990.

Other events

Thanks to Citadele's good reputation in the field of prevention and correction of money laundering, as well as previous experiences in cooperation with the Deposit Guarantee Fund in guaranteeing the payment of State-guaranteed compensation, the Committee on Financial and Capital Markets Citadele relied on 3 in March 2018 a state-guaranteed compensation. the costs for savers of JSC "ABLV Bank".

"Citadele" risk management and compliance were also highlighted by Moody's in the report published in February 2018 by Moody's Investors Service (Moody's Investors Service), which states that Citadele is well-positioned to to resist that can be generated by events that affect the development of the Latvian financial sector, as well as Citadele in the Baltic states and the reduction of transactions in the CIS countries.

In April 2018, Moody & # 39; s published a revised credit rating with a positive Citadele rating forecast, noting that the bank has emerged as a sustainable and development-focused group.

In 2018, Citadele was the subject of an independent external audit of AML (Money Laundering).

It noted that "Citadele" has introduced a leading practice that confirms its leading position in compliance with AML in the Baltic region.

The shareholders of Bank Citadele are the European Bank for Reconstruction and Development and an international group of investors with expertise in the banking sector worldwide.

Citadele Group is managed from Latvia with its subsidiaries and branches in Latvia, Lithuania, Estonia and Switzerland.

Citadele offers settlement and payment cards, loans, deposits, investments, asset management and leasing services, as well as a range of exclusive, unique products.

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